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South Africa Case Law

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Commercial And Corporate [2025] ZASCA 64

Set Square Developments (Pty) Ltd v Power Guarantees (Pty) Ltd and Another (099/2023; 150/24)

Set Square Developments (Pty) Ltd v Power Guarantees (Pty) Ltd and Another (099/2023; 150/24) [2025] ZASCA 64 (20 May 2025)

Court
Supreme Court of Appeal
Case number
099/23; 150/24
Judges
Meyer, Matojane, Unterhalter, Phatshoane, Molitsoane

The Supreme Court of Appeal held that the three on-demand guarantees issued by Power Guarantees in favour of Set Square Developments were autonomous instruments, independent of the underlying construction contracts. The court found that Set Square complied with the requirements for calling up the guarantees by providing written demands and notices of termination due to contractor default. Power Guarantees' defences based on the alleged non-existence or difference of the underlying contracts were rejected, as the parties to those contracts performed their obligations and did not dispute their…

Source excerpt

  • On Demand Guarantees
  • Performance Bonds
  • Fraud Exception
  • Contractual Autonomy
  • Mistake In Contract
  • Unconscionability Exception
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Commercial And Corporate [2024] ZAGPJHC 115

Innova Turnkey (Pty) Ltd and Others v Hollard Insurance Company Limited and Another (2023-134395)

Innova Turnkey (Pty) Ltd and Others v Hollard Insurance Company Limited and Another (2023-134395) [2024] ZAGPJHC 115 (9 February 2024)

Court
South Gauteng High Court, Johannesburg
Case number
2023-134395
Judge
D Dosio

The court held that the applicants failed to establish a prima facie right to an interim interdict restraining payment under the on-demand guarantees. The guarantees are autonomous and must be honoured strictly according to their terms, irrespective of disputes under the underlying contract. The only recognised exception is fraud, which was not alleged or proven by the applicants. Disputes regarding certification, termination, or calculation of amounts are matters for arbitration and do not justify interference with the guarantor's obligation to pay. The applicants have alternative remedies a…

Source excerpt

  • On Demand Guarantees
  • Interim Interdict
  • Autonomy Principle
  • Fraud Exception
  • Arbitration Clauses
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Banking And Finance [2014] ZASCA 212

State Bank of India and Another v Denel SOC Limited and Others (947/13)

State Bank of India and Another v Denel SOC Limited and Others (947/13) [2014] ZASCA 212; [2015] 2 All SA 152 (SCA) (3 December 2014)

Court
Supreme Court of Appeal
Case number
947/13
Judges
Brand, Bosielo, Theron, Mbha, Fourie

The Supreme Court of Appeal held that the demands made by the Indian banks under seven of the eight counter guarantees did not comply with the terms of those guarantees, as they were premised on non-fulfilment of contractual obligations rather than the specific events required by the guarantees. Therefore, Absa was not obliged to pay under those counter guarantees, and Denel was entitled to interdictory relief restraining payment pending finalisation of proceedings in India. However, with respect to counter guarantee no 821-02-0002584G, the guarantee expressly provided for exclusive jurisdict…

Source excerpt

  • On Demand Guarantees
  • Jurisdiction Clauses
  • Interdictory Relief
  • Banker Client Relationship
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About this LexChat collection

South Africa decisions are organised by court, judge, legal area and indexed issue so a practitioner can move from a proposition to a citable authority with the surrounding context intact.

Source links and collection timestamps are retained alongside the indexed records.